Telefonica SA (TEF) said Friday it was content with its stake in Italian peer Telecom Italia SpA (TI).

"We are very happy with our stake in Telco (the holding company that controls Telecom Italia) and it is based on a relationship of trust, Telefonica's Chairman Cesar Alierta said in a meeting with analysts.

Alierta added both telecommunications companies were benefitting from syngergies and the personal relationship within Telco was good.

On October 28, Telefonica and the other Telco shareholders are due to renew or terminate the pact.

Telefonica is Europe's largest telecommunications company by market value.

Company Web site: http://www.telefonica.com

-By Jason Sinclair, Dow Jones Newswires, 34 913958127, jason.sinclair@dowjones.com